BUSINESS, INNOVATION AND SKILLS

EU Competitiveness Council (Pre-Council Statement)

Mark Prisk: My noble Friend the Under-Secretary of State for Business, Innovation and Skills, (Baroness Wilcox), has today made the following statement:
	"The EU Competitiveness Council will take place in Brussels on 10 December 2010. I shall represent the UK on industry and internal market issues and Andy Lebrecht, the UK's Deputy Permanent Representative to the EU will represent the UK when I am not in attendance.
	The main agenda items will include the proposed adoption of two sets of Council conclusions: one on the Single Market Act and one on the EU framework for betting and gambling. There will be an exchange of views on the EU patent to consider the way forward and possible enhanced co-operation process. There will also be a ministerial lunchtime discussion on the use of EU impact assessments in the EU institutions to support the development of EU legislation. A proposed regulation on EU state aid to support the closure of coal mines in the EU and the adoption of Council conclusions on EU industrial policy will also be discussed.
	The following items will be taken under any other business:
	Presidency information on transposition of EU directives into national law;
	Commission information on implementation and mutual evaluation of the EU services directive;
	Commission information on the proposed EU consumer rights directive;
	Commission information on the EU consumer market scoreboard;
	The Government's main aims will be to:
	To agree Council conclusions on the Single Market Act.
	Support progress on the EU patent.
	Endorse Council conclusions on an EU framework for gambling and betting in member states.
	Support the importance of impact assessments in the EU institutions to support EU decision making.
	Accept the proposal on EU state aid for coal mines closure.
	Agree Council conclusions on EU industrial policy."

TREASURY

Anti-Avoidance: Disguised Remuneration

David Gauke: Following the written ministerial statement on 6 December 2010, Official Report, column 1WS, and as announced at the June Budget, the Government are introducing legislation to tackle arrangements involving trusts or other vehicles used to reward employees which seek to avoid or defer the payment of income tax or National Insurance Contributions (NICs). The arrangements covered include the provision of a tax-advantaged alternative to saving beyond the annual and lifetime allowances available in a registered pension scheme. In many cases, these third-party arrangements allow an employee to enjoy the full benefit of a sum of money paid or assets provided while arguing that, because of the structure of the arrangements, there is no legal right to the money or assets. This argument is used to support a proposition that income tax and NICs are due (if at all) only on the use of the money or assets during the period of the employee's employment and not on their full value.
	The legislation inserts a new part 7A into the Income Tax (Earning and Pensions) Act 2003. The legislation ensures that where a third party makes provision for what is in substance a reward or recognition, or a loan, in connection with the employee's current, former, or future employment, an income tax charge arises. Income tax is charged on the sum of money made available and on the higher of the cost or market value where an asset is used to deliver the reward or recognition, for example by transferring or otherwise making available an asset for the employee's use and benefit as if the employee owned the asset. The amount concerned will count as a payment of employment income and the employer will be required to account for PAYE.
	There will be protection for specified types of arrangements involving third parties-including registered pension schemes, approved employee share schemes and ordinary commercial transactions. The tax treatment of benefits packages which are available across the employer's work force will also be unaffected by the measure, provided that the benefits are genuinely available to substantially all employees and cannot be accessed by only specially selected individuals.
	The legislation will take effect from 6 April 2011 and apply to rewards, recognitions or loans which are earmarked for the benefit of an employee, or former or prospective employee, or otherwise made available on and after that date.
	In addition, anti-forestalling provisions apply to the payment of sums (including loans) and the provision of readily convertible assets for the purposes of securing the payment of sums (including loans) where the sum is paid or the asset is provided between 9 December 2010 and 5 April 2011 where, if paid or provided on or after 6 April 2011, they would be caught by the legislation.
	The anti-forestalling charge will arise on 6 April 2012 if sums paid have not been repaid, or readily convertible assets used to secure the payment of a sum have not been returned before that date, or not otherwise charged to tax under section 62 of ITEPA 2003. Any sum paid to which these anti-forestalling provisions apply, less a deduction for any amount which has been repaid, will count as employment income and the employer will be required to account for income tax under PAYE as if the amount concerned was a payment made on 6 April 2012. The value of any readily convertible asset provided (to which the anti-forestalling provisions apply) will also count as employment income, subject to the operation of PAYE by the employer as if the amount concerned was a payment made on 6 April 2012.
	Regulations will be brought forward to apply National Insurance Contributions to the amounts charged to tax by this legislation.
	Further details are contained in a draft explanatory note published on HMRC's website today, together with the draft legislation.

Tax Policy Making and Draft Finance Bill 2011

David Gauke: At the June Budget, the Government set out their commitment to build a new approach to tax policy making-one founded on predictability, stability and simplicity-with consultation on policy and scrutiny of legislation as the cornerstones.
	Today the Government are publishing their response to the consultation "Tax policy making: a new approach", which sets a number of concrete improvements to the way in which tax policy is developed, communicated and legislated. We have already taken steps to improve predictability of the tax system, for example through the "Corporate Tax Road Map" published on 29 November 2009.
	We are also making further progress towards our objectives with the publication, in draft, of the majority of 2011 Finance Bill clauses. This practice will become an established feature in the tax policy making cycle. Confirming the majority of intended tax changes at least three months ahead of publication of the Bill supports predictability in the tax system and provides an opportunity for draft legislation to be properly scrutinised.
	The draft clauses will be open to consultation until 9 February. HMRC will host an open day for tax practitioners and tax managers on 24 January 2011. The Finance Bill will be published in full on 31 March 2011.
	In response to feedback received through the consultation on tax policy making, we have also published a supporting document that provides an overview of the draft clauses published today. This sets out, for each draft clause, the proposed change, why we seek the change and what we expect the impacts to be.
	Alongside the relevant draft clauses, the Government are also publishing:
	a response to the consultation on furnished holiday lettings;
	a response to the consultation on pensions annuitisation;
	a response to the consultation on taxation of gaming machines
	a response to the consultation on the simplification of corporate capital gains;
	a response to consultation on modernisation of investment trust companies; and
	two consultations relating to HMRC's powers review.
	Draft clauses, the Government's response to the consultation on tax policy making and other documents published today can be found on HM Treasury and HM Revenue and Customs websites.
	The Government have also tabled two separate written statements today in relation to the following clauses:
	Disguised remuneration; and
	Restricting pensions tax relief.

Unfunded Public Service Pension Contributions

Danny Alexander: The Government announced at the spending review their plans to take forward recommendations made by the Independent Public Service Pension Commission in its interim report. These plans included a commitment to undertake a review of the discount rate used to set contributions in the unfunded public service pension schemes.
	Today the public consultation on the discount rate has been launched and the Government would welcome comments from all interested groups. The consultation document has been placed in the Libraries of both Houses, can be found at: http://www.hm-treasury.gov.uk/consult_unfunded_pensions.htm and will end on 3 March.

Restricting Pensions Tax Relief

Mark Hoban: On 14 October the Government announced that, from April 2011, the annual allowance for tax-privileged pension saving will be reduced from £255,000 to £50,000 and that from April 2012 the lifetime allowance will be reduced from £1.8 million to £1.5 million, to ensure that pensions tax relief remains fair and affordable. Representations were sought on some specific policy issues around reducing the lifetime allowance and the Government are today setting out their proposals for the operation of a new protection regime for individuals who may have already built up pension savings in the expectation that the lifetime allowance would remain at its current level of £1,800,000.
	This new "fixed protection" will give anyone the opportunity to apply for a lifetime allowance of £1,800,000 instead of the reduced lifetime allowance of £1,500,000 on the condition that they no longer actively contribute to their pension or actively accrue pension benefits (that is, broadly excluding annual inflationary uprating). Individuals who are already entitled to primary protection and/or enhanced protection will also continue to receive their current levels of protection.
	Draft clauses and draft guidance are being published today on the reduced lifetime allowance, including the operation of "fixed protection". It is intended that from 6 April 2012 individuals will be considered "inactive" if they do not make or receive any further contributions to a registered defined contribution pension scheme, or build up additional annual pension over an allowable "relevant percentage" in a registered defined benefit or cash balance pension scheme. In order to prevent pension scheme rules being amended following this announcement so as to allow for artificially inflated annual increases to pensions rates the "relevant percentage" is defined as being the rate of increase specified in the scheme rules as at today's date, 9 December 2010. If no rate is specified in the scheme rules, the "relevant percentage" will be the annual percentage increase in the consumer prices index for September in the previous tax year.
	A revised set of draft clauses on the annual allowance, that were previously published on 14 October, have also been published today. This contains some additions and amendments, including details of the proposed exemption from the annual allowance in cases of severe ill health.

COMMUNITIES AND LOCAL GOVERNMENT

Localism Bill and Social Housing

Grant Shapps: Following the spending review, I am today announcing further details of the new "affordable rent" model to be offered by private registered providers of social housing (hereafter referred to as housing associations) from April 2011.
	We must make far better use of existing social housing-ensuring that we target support where it is needed most. The Government published a policy paper, "Local decisions: a fairer fixture for social housing"' on 22 November 2010. The localism Bill will take forward radical reforms, including flexible tenancies and changes to the way social housing is allocated. The Government have given a clear commitment to ensure that the existing tenancies and rents of secure and assured tenants of social landlords are protected and respected in these reforms.
	The Bill will contain a wide-ranging package of reforms that will devolve greater power and freedoms to councils and neighbourhoods, establish powerful new rights for communities, revolutionise the planning system, and give communities control over housing decisions.
	Given the huge pressures on public finances we must also ensure that we get more for the money we invest in new social homes. Alongside the Bill, the introduction of affordable rent will represent a significant first step towards giving social landlords much greater freedom to respond to local housing need.
	The Homes and Communities Agency will publish a full framework document early next year that will form the basis for bids from providers who are interested in offering affordable rent.
	Overview
	Affordable rent is designed to:
	maximise the delivery of new social housing by making the best possible use of constrained public subsidy and the existing social housing stock; and
	provide an offer which is more diverse for the range of people accessing social housing, providing alternatives to traditional social rent.
	Affordable rent falls within the definition of social housing in section 68 of the Housing and Regeneration Act 2008 (and, in particular, the definition of low-cost rental accommodation in section 69 of that Act). Affordable rent properties will therefore be subject to regulation by the Tenant Services Authority-and its Homes and Communities Agency successor-where they are provided by a registered provider.
	Affordable rent will offer housing associations the flexibility to convert vacant social rent properties to affordable rent at re-let, at a rent level of up to 80% of market rent. Housing associations will be able to convert vacant properties to affordable rent where they have reached an investment agreement with the Home and Communities Agency about how additional rental income will be reinvested in the supply of new affordable housing.
	The Homes and Communities Agency has a capital budget of almost £4.5 billion over the spending review period to fund affordable housing supply, of which around £2 billion will support the delivery of new affordable rent homes (the total also includes £2.3 billion to meet existing commitments). While grant funding will primarily target affordable rent, there may be some scope for delivery of low cost home ownership as part of the agreements, where this is appropriate for local circumstances and helps to promote the overall supply of affordable homes. Ministers intend to make the payment of grant funding conditional on transparency.
	Agreements could also involve approval in principle for future asset management plans that include social housing disposals, subject to the need for statutory consent and consultation with the relevant local authorities. The Tenant Services Authority will need to be engaged in the process to ensure that providers can continue to meet its regulatory standards, including on viability.
	Allocation
	We envisage that affordable rent properties will be allocated in the same way that social rent properties are now. The existing regulatory obligation on associations to co-operate with local authorities' strategic housing function on the allocation of social rent properties will also apply to affordable rent. Similarly we envisage that existing lettings arrangements operated by local authorities and housing associations will continue to apply and that affordable rent properties will-where appropriate-be made available through choice-based lettings.
	The statutory and regulatory framework for allocations provides scope for local flexibility. Local authorities and associations may wish to exercise this discretion in relation to affordable rent in order to meet local needs and priorities in the most effective way possible (for example, through the adoption of appropriate local lettings policies).
	Rent
	Affordable rent properties will not be subject to the rent restructuring policy that applies to social rented housing. This policy was originally outlined by the previous Government in March 2001 (in the "Guide to Social Rent Reforms") and implemented by the then Housing Corporation (via the "Rent Influencing Regime Guidance" published by the Corporation in October 2001). The previous Government's direction to the Tenant Services Authority issued in November 2009 required the regulator to set a standard on rent that reflected the same policy.
	In particular, the direction required the Tenant Services Authority, when setting a standard on rents, to have regard to the social rent guidance. The direction defined the term "social rent guidance" as the guide to social rent reforms published in March2001 "and any guidance issued by the Department, or its successors, in relation to that document". This statement should be treated as guidance issued in relation to the March 2001 document. The direction also obliged the Tenant Services Authority to set a rent standard with a view to achieving, so far as possible, the target rent policy set out in the rent influencing regime guidance.
	This statement clarifies that affordable rent properties are not covered by the Government's rent restructuring policy. Note that a property is only considered to be "affordable rent" for these purposes where it is linked to an agreement with the Homes and Communities Agency on investment.
	Housing associations will be able to let an affordable rent property (whether a converted void or new build) at up to 80% of market rent for an equivalent property for that size and location. The association's calculation of the market rent would need to be based on a residential lettings estimate for a property of the appropriate size, condition and area. Valuations should be in accordance with a RICS recognised method.
	The maximum annual rent increase on an affordable rent property will be RPI + 0.5%. However associations will be required to rebase the rent on each occasion that a new tenancy agreement is issued (or renewed) for an affordable rent property. This requirement, which overrides the RPI + 0.5% limit, is designed to ensure that the rent set at the beginning of each new tenancy is no higher than 80% of the market rent.
	Tenure
	The Government have already published radical proposals to give greater flexibility to both local authority and housing association landlords over the types of tenure they can offer to social housing tenants(1). In particular, the Government believe that it is no longer right to require that every social tenancy should be for life-regardless of the household's particular circumstances. The aim is to create a more flexible system so that scarce public resource can be focused on those who need it most.
	The affordable rent model is the first step towards delivering these wider reforms. Housing associations will be able to offer affordable rent on fixed-term tenancies, but they will also retain the option to offer lifetime tenancies should they wish to do so. We would expect associations to use this additional flexibility to ensure that help and support are focused on those who need it most when they need it most, and to build strong and cohesive communities. They will need to meet the existing regulatory requirement to publish clear and accessible policies which outline their approach to tenancy management.
	The Government are currently consulting on their wider tenure reform proposals for social housing, including on the rights and protections that should be available to tenants as part of these changes. These proposals include a minimum fixed-term of two years for all general needs social tenancies, the right to acquire for tenants with a fixed-term tenancy of two years or more (subject to the existing conditions and exceptions) and changes to succession rights(2). Some of the proposals will require primary legislation and we intend to deliver these through the localism Bill. The final proposals, once implemented (either by legislation or regulation), will apply to fixed-term tenancies that are subsequently issued for both affordable rent and traditional social rent.
	However we envisage that the first affordable rent properties will be let during 2011-12, before the wider tenure reform proposals are due to come on stream. We have therefore considered which of the proposed conditions should be attached to the affordable rent model from the start. It should be noted that the proposals that require primary legislation (for example, on the right to acquire) cannot be brought forward in this way.
	We wish to apply the following (non-statutory) conditions to the affordable rent model:
	a minimum fixed term of two years for affordable rent tenancies; and
	where a landlord decides, in line with its published policy, not to reissue an affordable rent tenancy at the end of the fixed-term, the landlord should provide advice and assistance to help the tenant find suitable alternative accommodation. Landlords and tenants may wish to consider a range of "end of tenancy" options depending on the needs of the household concerned. This could include selling the property to the tenant via conversion to shared ownership (subject to consent).
	(1)"Local Decisions: a fairer future for social housing" (22 November 2010).
	(2)Full details of these proposals are set out in section 2 of the "Local Decisions" document

DEFENCE

War Pensions: Uprating 2011

Andrew Robathan: The new rates of war pensions and allowances proposed from April 2011 are set out in the following tables. The annual uprating of war pensions and allowances for 2011 will take place from the week beginning 11 April 2011. Rates for 2011 are increasing by 3.1% in line with the Consumer Price Index as outlined in the Budget.
	
		
			 War Pensions Rates 
			  Rates Rates 
			 (Weekly rates unless otherwise shown) 2010 2011 
			 WAR PENSIONS   
			
			 Disablement Pension (100% rates)   
			 officer (£ per annum) 8072.00 8323.00 
			 other ranks (weekly amount) 154.70 159.50 
			
			 Age allowances payable from age 65   
			 40%-50% 10.40 10.70 
			 over 50% but not over 70% 15.90 16.40 
			 over 70% but not over 90% 22.65 23.35 
			 over 90% 31.80 32.80 
			
			 Disablement gratuity (one-off payment)   
			 specified minor injury (min.) 985.00 1016.00 
			 specified minor injury (max.) 7356.00 7584.00 
			 1-5% gratuity 2459.00 2535.00 
			 6-14% gratuity 5468.00 5638.00 
			 15-19% gratuity 9564.00 9860.00 
			
			 SUPPLEMENTARY ALLOWANCES   
			
			 Unemployability allowance   
			 Personal 95.60 98.55 
			 Adult dependency increase 53.10 54.75 
			 Increase for first child 12.35 12.75 
			 increase for subsequent children 14.50 14.95 
			
			 Invalidity allowance   
			 higher rate 18.95 19.55 
			 middle rate 12.20 12.60 
			 lower rate 6.10 6.30 
			
			 Constant attendance allowance   
			 exceptional rate 116.80 120.40 
			 intermediate rate 87.60 90.30 
			 Full-day rate 58.40 60.20 
			 Part-day rate 29.20 30.10 
			
			 Comforts allowance   
			 higher rate 25.10 25.90 
			 lower rate 12.55 12.95 
			
			 Mobility supplement 55.65 57.40 
			
			 Allowance for lowered standard of occupation (maximum) 58.32 60.12 
			
			 Therapeutic earnings limit (annual rate) 4836.00 4940.00 
			
			 Exceptionally severe disablement allowance 58.40 60.20 
			
			 Severe disablement occupational allowance 29.20 30.10 
			
			 Clothing allowance (£ per annum) 199.00 205.00 
			
			 Education allowance (£ per annum) (max) 120.00 120.00 
			
			 WIDOW(ER)S BENEFITS   
			
			 Widow(er)s'-other ranks (basic with children) (weekly amount) 117.30 120.95 
			 Widow(er)-Officer (basic with children) (£ per annum) 6239.00 6432.00 
			 Childless widow(er)s' u-40 (other ranks) (weekly amount 28.10 28.97 
			 Childless widow(er)s' u-40 (Officer highest rate both wars) (£ per annum) 2167.00 2234.00 
			
			 Supplementary Pension 78.48 80.91 
			 Age allowance   
			 (a) age 65 to 69 13.40 13.80 
			 (b) age 70 to 79 25.70 26.50 
			 (c) age 80 and over 38.10 39.30 
			
			 Children's allowance   
			 Increase for first child 18.40 18.95 
			 Increase for subsequent children 20.60 21.25 
			
			 Orphan's pension   
			 Increase for first child 21.00 21.65 
			 Increase for subsequent children 23.05 23.75 
			
			 Unmarried dependant living as spouse (max) 114.95 118.60 
			
			 Rent allowance (maximum) 44.25 45.60 
			
			 Adult orphan's pension (maximum) 90.10 92.90

FOREIGN AND COMMONWEALTH AFFAIRS

Foreign Affairs Council and General Affairs Council

David Lidington: The Foreign Affairs Council and General Affairs Council will meet in Brussels on 13 and 14 December. My right hon. Friend the Foreign Secretary will attend the Foreign Affairs Council. I will attend the General Affairs Council.
	foreign affairs council (fac)
	Western Balkans
	We expect Ministers to focus on Bosnia and Herzegovina (BiH), and in particular the need for the new Government to focus on the EU and wider reform agenda, including constitutional reforms. There may be some discussion of the EU institutional presence in BiH; we remain committed to the completion of the "5+2" conditionality for the transition of the Office of the High Representative to an EU-only presence.
	Additionally, the noble Baroness Ashton is likely to update Ministers on preparations for the EU-facilitated Belgrade/Pristina dialogue. We hope this begins as soon as possible. There may be an initial exchange of views on the outcomes of the 12 December parliamentary elections in Kosovo.
	Sudan
	We expect conclusions to be adopted on preparations ahead of the referendum on self-determination for southern Sudan in January 2011, as part of the final stages of the comprehensive peace agreement. We believe that these conclusions should emphasise the importance of focused, sustained efforts to ensure a timely, peaceful and credible referendum. We also expect Ministers to discuss humanitarian contingency planning for the referendum, and to underline our continuing collective long-term support for northern and southern Sudan, regardless of the referendum outcome.
	Middle East Peace Process (MEPP)
	Ministers will discuss latest developments in the region. We expect conclusions emphasising the EU's support for US efforts, in conjunction with other members of the Quartet. Ministers may also discuss how best to improve access to Gaza.
	Somalia/Horn of Africa
	Ministers are expected to assess the effectiveness of EU efforts in the Horn of Africa, and in particular support to the peace process in Somalia.
	We continue to support EU efforts to train the Somali security forces through the EU training mission Somalia. The existence of pay, command and control and infrastructure for returning troops is vital to the success of the mission. We encourage ongoing EU support to the African Union mission to Somalia, which provides the secure space within which political reconciliation can take place. On the political track, debate is likely to focus on support to Somalia's regions: Puntland and Somaliland. We support EU work in these areas, building on a central tenet of the UK strategy: support to local and regional areas of stability.
	Conclusions are likely to reaffirm the importance of work on Somalia, a UK priority in Africa; raise Somalia's profile on the EU agenda; and task further work on scenarios for how to end the current transitional period and what should succeed it post-August 2011.
	Afghanistan
	We expect the noble Baroness Ashton to consider how to increase the effectiveness of EU assistance in Afghanistan, in the context of the EU action plan for Afghanistan. The discussion is expected to follow a briefing by the European Union Special Representatives (EUSR) Ambassador Usackas for Development Ministers at the 9 December FAC (on which my right hon. Friend the Development Secretary has already written to the House).
	Strategic Partners
	This discussion is likely to take place over dinner on 13 December. The noble Baroness Ashton will solicit views from Partners how to develop on the EU's relationship with Russia, China and the US. We are keen for the noble Baroness Ashton to continue her work on these partnerships, devising a set of concrete objectives for the EU's external action. We believe that trade is a central component of these relationships.
	Moldova
	Discussion will focus on the outcome of the 28 November parliamentary elections. These were largely conducted to internationally accepted standards. Despite the encouraging conduct of the elections, and a good turnout, neither the outgoing coalition Government nor any single party won enough seats to form a Government or to elect a permanent president. The prospect of further stalemate and political instability remains very real. We fully support the statement made by the noble Baroness Ashton and the Enlargement Commissioner, Stefan Füle (see link below).
	http://www.consilium.europa.eu/uedocs/cms_ data/docs/pressdata/EN/foraff/11 8093.pdf
	Iran
	The noble Baroness Ashton is likely to report on the recent E3+3 talks with Iran in Geneva. Talks will continue in January 2011. The noble Baroness Ashton released a statement on behalf of the E3+3 on 7 December (see link below)
	http://www.consilium.europa.eu/uedocs/cms_Data/docs/pressdata/EN/foraff/l18263.pdf
	Priorities for 2011
	The noble Baroness Ashton will solicit views on priorities for her and the External Action Service in 2011.
	AOB
	A number of smaller issues are on the agenda under AOB. Ministers will hear reports back from the OSCE Summit in Astana, which I attended along with my right hon. Friend the Deputy Prime Minister. Some Partners have requested a general discussion on the plight of religious minorities in Iraq. We expect Ministers to agree (without discussion) short conclusions on the Democratic Republic of Congo, focusing on the forthcoming elections.
	general affairs council (gac)
	Enlargement
	The presidency will chair a discussion on draft European Council Conclusions, taking stock of progress on EU enlargement and on the stabilisation and association process in the Western Balkans. These will be informed by the European Commission's Communication of 9 November setting out an enlargement strategy and progress reports for candidates and potential candidates. I submitted this communication to Parliament on 30 November under an explanatory memorandum.
	As I set out in that memorandum, the Government believe the Commission's communication to be a broadly fair and balanced assessment. We will seek conclusions reconfirming support for EU enlargement and recognition that the accession process gives strong encouragement to political and economic reform in the enlargement countries and reinforces peace, democracy and stability in Europe. We agree with the Commission's view that progress towards the EU should take place at the rate of reform of the (potential) candidate country and that key challenges remain for most enlargement countries, including on the rule of law, and the fight against corruption and organised crime. We further support the Commission's view that bilateral disputes should not be allowed to hold up the accession process.
	On individual countries, we will welcome progress made this year by Turkey with the recent constitutional reforms, and support the Commission's recognition of Turkey's role in the region. We will expect conclusions to indicate the EU's readiness to intensify its foreign policy dialogue with Turkey. However, we share the Council's disappointment that Turkey has not yet fulfilled its obligation to open its ports to trade with Cyprus under the additional protocol to the association agreement and agree that further efforts are needed to accelerate the pace of Turkey's accession negotiations.
	We support the Commission's view that full co-operation with the International Criminal Tribunal remains a requirement for Croatia's progress throughout the accession process, and that Iceland will need to address existing obligation, such as those identified by the European Free Trade Association (EFTA) Surveillance Authority (ESA) under the European Economic Area (EEA) agreement.
	We will seek conclusions reaffirming the European perspective of the whole Western Balkans region. We support the European Commission's recommendation to grant candidate status to Montenegro and to open accession negotiations with Macedonia (FYROM). We will seek balanced conclusions consistent with Kosovo's European perspective. The Government are concerned about the situation in Bosnia and Herzegovina, and will seek conclusions urging its political leaders to put the reform agenda at the heart of their new government programmes.
	Preparations for the December and February European Councils
	The presidency has invited the President of the Council, Van Rompuy, to discuss preparations for the European Council of 16 and17 December. The Council agenda covers Economic Governance-the permanent crisis mechanism and pension reform, the EU budget and External Relations (Strategic Partnerships). The discussion on 14 December is likely to focus on economic and eurozone issues. The Prime Minister will report to Parliament on the Council in the normal way.
	There will also be a short information point on the February European Council. No agenda has yet been issued, but we expect energy policy and innovation to feature.
	Disaster Response
	There is likely to be a further discussion of the Commission's ideas for disaster response, following last month's presentation by the Commissioner for International Co-operation, Humanitarian Aid and Crisis Response (Georgieva). The Commission's proposals-with which we are broadly content-concern the response to disasters inside and outside the EU, considering both civil protection and humanitarian assistance, and seeking cost-effectiveness through use of common assets.
	Cohesion Funds
	The General Affairs Council will have a preliminary discussion of the Commission's Report on Structural Cohesion Funds
	http://ec.europa.eu./regional_policy/sources/docoffic/official/repor_en.htm
	following the Liege informal Ministerial of 22 and 23 November. Baroness Wilcox represented the UK. The Commission will end its EU-wide consultations on the proposals on 31 January 2011.
	Europe 2020
	If there is time, we expect the presidency to give a short update on Europe 2020, the EU's economic growth strategy.

Turks and Caicos Islands

Henry Bellingham: My right hon. Friend the Minister of State for International Development and I wish to update the House about the situation in the Turks and Caicos Islands, a British overseas territory.
	It has become clear to this Government since they assumed office that there is a serious and deteriorating problem in the Turks and Caicos Islands.
	In August 2009, the previous Government suspended the Turks and Caicos Islands ministerial Government for an initial period of up to two years. A special investigation and prosecution team was appointed to undertake a criminal investigation into matters identified by Sir Robin Auld's report, which concluded that there was a high probability of systemic corruption in the former Turks and Caicos Islands Government. The team is pursuing its work as rigorously and as quickly as possible.
	On 1 July 2010, as an urgent initial response to the unfolding financial plight of the Turks and Caicos Islands Government, the Secretary of State for International Development stated that his Department was having to step in to design and put in place a package of financial support with commercial lenders, as well as providing an immediate short-term loan to help meet unavoidable commitments including staff salaries for the islands' police, health and education services.
	It has become clear to UK Ministers that the fiscal picture in the Turks and Caicos Islands represents an unacceptable collapse in the fiscal governance of the territory, which needs urgently to be addressed. While funding the immediate unavoidable costs of the Turks and Caicos Islands Government, the Department for International Development has provided a chief financial officer to the Turks and Caicos Islands Government, to meet the urgent task of addressing its structural deficit and putting it on a course towards a sustainable fiscal surplus in the financial year 2012-13. In addition, the Department is reaching the final stages of putting in place a medium-term financial package.
	In September 2010, I announced in the Turks and Caicos Islands that the UK Government did not want to postpone elections any longer than necessary, but that they could not be held in 2011. We intend to submit to the 15 December meeting of the Privy Council an Order in Council continuing in force the Turks and Caicos Islands Constitution (Interim Amendment) Order 2009 beyond 14 August 2011.
	I undertook to set out milestones that would need to be met before elections could once again take place. The Foreign and Commonwealth Office and the Department for International Development currently jointly assess these milestones to be as follows:
	implementation of a new Turks and Caicos Islands constitution order, in support of recommendations of the Commission of Inquiry, which underpins good governance and sound public financial management;
	introduction of a number of new ordinances, including those making provision for: (i) the electoral process and regulation of political parties; (ii) integrity and accountability in public life; (iii) public financial management;
	establishment of robust and transparent public financial management processes to provide a stable economic environment and a strengthening of the Turks and Caicos Islands Government's capacity to manage their public finances;
	implementation of budget measures to put the Turks and Caicos Islands Government on track to achieve a fiscal surplus in the financial year ending March 2013;
	implementation of a transparent and fair process for acquisition of belongership;
	significant progress with the civil and criminal processes recommended by the Commission of Inquiry, and implementation of measures to enable these to continue unimpeded;
	implementation of a new Crown land policy;
	substantial progress in the reform of the public service.
	Reaching these milestones will require time, care and hard work by the UK and the Turks and Caicos Islands Government, and particularly by the Turks and Caicos Islands public sector. It will need the encouragement of the community. There will be public consultation on a number of issues across Turks and Caicos Islands and, we hope, the engagement of the islands political parties. The milestones we have identified do not include everything that will have to be done before elections take place. In general the UK Government will have to be satisfied that the necessary reforms have been put in place to address the issues raised by the Commission of Inquiry, to prevent such maladministration being repeated, and to engender the confidence of the international community. It is our considered view at this stage, that the milestones listed above are the minimum preconditions before the Turks and Caicos Islands can return to elected government.
	The UK Government have helped protect the Turks and Caicos Islands Government finances from complete collapse and intend to provide continuing financial support. However it is important that the islands make good use of this period of UK financial support to address the deep crisis in public finance and to achieve a fiscal surplus. The UK Government currently intend to retain sufficient control over public finances following elections in order to ensure that the Turks and Caicos Islands Government emerges from its financial crisis as soon as possible, and that the temporary package of UK support is no longer needed.
	We hope achievement of these milestones will also help any future Turks and Caicos Islands Government to continue to embed good governance, with full respect for the rule of law and human rights, and zero tolerance of corruption.
	Achieving these milestones will be a great challenge. As we now see things, the UK Government will only be able to set a date for the elections when the milestones have been reached. We hope that this will happen in time for elections to take place in 2012.

UK's Relationship with the Commonwealth

William Hague: Her Majesty's Government have undertaken to strengthen the United Kingdom's relationship with the Commonwealth and to ensure that the United Kingdom is closely involved in plans to reinvigorate this unique organisation.
	The purpose of this statement is to inform the House about the Government's reasons and objectives for doing this.
	The Commonwealth today is as important to the United Kingdom as ever. The coalition agreement sets out a vision
	"to strengthen the Commonwealth as a focus for promoting democratic values and development."
	The Foreign and Commonwealth Office will lead a co-ordinated,cross-Whitehall approach to help the Commonwealth achieve its potential and which underlines the United Kingdom's commitment to this unique global organisation.
	Our relationship with the Commonwealth has been primarily based on its history, values and common bonds. But the modem Commonwealth, including countries that were never British colonies, has been transformed. Today's Commonwealth bridges all of the continents, embraces almost 2 billion people, and represents all of the world's major faiths. Its membership includes many of the fastest-growing and increasingly technologically advanced economies in the world. These are the great markets of today and tomorrow. Equally important is the forum it provides for numerous smaller nations which may feel that their voice is lost in the wider United Nations structure and who find the more informal Commonwealth setting an ideal place to be heard.
	The Commonwealth of the 21st century should stand for democracy, development, and human rights, and act as a recognised force for good on the issues of our times. It could also be used much more effectively to further the United Kingdom's foreign policy priorities and worldwide economic interests. The United Kingdom is already at the heart of this ready-made network, which fits perfectly into the new global environment. In the words of the Head of the Commonwealth, Her Majesty the Queen, the Commonwealth is indeed "the face of the future". It is a future in which the United Kingdom will play a full part.
	To achieve this, the Foreign and Commonwealth Office will work closely with Whitehall partners to:
	Define and develop ways in which the modern Commonwealth can add value to the delivery of United Kingdom policy goals and act as a global soft power network.
	Use the Commonwealth to develop trade and investment opportunities for the United Kingdom and to promote intra-Commonwealth trade.
	Support Commonwealth development programmes and bilateral assistance in Commonwealth countries.
	Reform, strengthen and renew the Commonwealth structures and purposes through the Eminent Persons Group, the Commonwealth ministerial action group reform process, and in concert with key partners ahead of the Commonwealth Heads of Government meeting in 2011.
	Focus Commonwealth activity where it has strengths and conclude activity where others are better placed and better resourced.
	Strengthen the Commonwealth through expanded membership and partner and observer agreements.
	Work with the Commonwealth secretariat better to demonstrate the benefits of membership to the public in Commonwealth nations
	Use the Commonwealth in other international institutions (e.g. the United Nations, the Group of 20) where we can develop common foreign policy aims.
	Connect with the "internal Commonwealth", the many United Kingdom communities with close ties to Commonwealth countries, to the benefit of social cohesion within British society.

HOME DEPARTMENT

Justice and Home Affairs (Post-Council Statement)

Theresa May: The Justice and Home Affairs Council was held on 2 and 3 December in Brussels. My right hon. and learned Friend, the Secretary of State for Justice and I attended on behalf of the United Kingdom. The following issues were discussed at the Council:
	The Council began with Mixed Committee with Norway, Iceland, Liechtenstein and Switzerland (non-EU Schengen States). The Commission provided an update on the progress of the second generation of the Schengen Information System (SIS II) focusing on agreeing the additional financial facility for member states to cover national implementation of the system.
	The Commission then reported on the implementation of the Council conclusions on 29 measures for reinforcing the protection of the external borders and combating illegal immigration. Internal EU progress included the Frontex Rapid Border Intervention team (RABIT) at the Greece-Turkey border, the Asylum Support Office and the Frontex operational office in Piraeus. Externally, the EU had contributed to a regional protection programme in the Horn of Africa, concluded readmission agreements with Georgia and Pakistan, signed a mobility partnership with Georgia, and opened a migration dialogue with Libya. The Commission will report on the development of the European Surveillance System (EUROSUR) in spring 2011. The Commission highlighted the need by member states to adopt the new Frontex regulation; conclude further working arrangements between Frontex and third countries; develop EUROSUR and close ongoing readmission negotiations.
	Under Mixed Committee AOB, Switzerland reported the results of last week's referendum in which a majority of the population voted in favour of automatically deporting foreign national criminals.
	Following Mixed Committee the main Council began with a debate on asylum and migration during which the presidency noted recent achievements from political agreement on the long-term residents' directive to the first meeting of the Asylum Support Office and progress on the Greece action plan. The presidency welcomed the four incoming presidencies' agreement to deliver the asylum package by 2012 and emphasised that all member states must meet their obligations under EU law. The Government welcomed the opportunity to discuss some of the most pressing challenges member states faced, and set out domestic plans to bring levels of non-EU migration down to sustainable levels. The Government were proud to share the EU's strong tradition of protecting genuine refugees but noted there were clear weaknesses in the system. The Government stated that a focus on fast, efficient decision making; reluctance to see legislation as the solution; and emphasis on practical co-operation was needed. Delays in the negotiations so far demonstrated member states' reluctance to compromise on proposals which would threaten their individual asylum systems. Instead, practical steps should be taken to provide quicker protection to those in need, and to support the safe return of those with no grounds to stay. The first meeting of the European Asylum Support Office was an important milestone. But the situation in Greece was the most pressing challenge and here the Government were pleased to see contributions to the national action plan were coming together; but a sustainable improvement would take years of commitment and substantial resources. More needed to be done. The EU had to take proactive action to stop new illegal immigration threats before they created this pressure. Commissioner Malmstrom updated Council on progress so far under the Greek action plan, set out next steps and urged Greece to take ownership of the plan.
	The presidency updated Council on the results of its legal migration conference, which focused on the challenges of an older EU population, declining labour force, and weakening cultural identity in the face of immigration.
	Over a private lunch Interior Ministers had an exchange of views on alternatives to the detention of children and agreed on the split-seat solution of the location of the IT Agency with infrastructure remaining in Strasbourg and its management in Tallinn.
	After lunch the Council discussed air cargo security. Following the recent discovery of explosive devices in air cargo, a high-level group produced a report on strengthening air cargo security for both Council meetings on 2 December (Transport and Justice and Home Affairs). The presidency presented this report, which sets out ways to strengthen the security regime around air cargo coming into the EU. The Government broadly welcomed the report and the associated action plan. The presidency concluded orally that the Council had a "positive appreciation" of the report, and asked the Commission and member states to ensure a speedy implementation of the action plan. The Commission was asked to report back to the Council on progress made. A parallel discussion took place in the Transport Council.
	The EU counter terrorism co-ordinator presented his regular assessment of progress against the EU's CT action plan and noted in particular the importance of coherence between the internal and external dimension of CT. The Government broadly welcomed the report supporting the idea of a discussion of external CT in the JHA Council with the EU's High Representative. However, the Government expressed concerns about plans to use article 75 of the treaty on the functioning of the EU as the legal base for an internal terrorist sanctions regime.
	Next the Council agreed the three negotiating mandates to authorise the start of negotiations for agreements between the EU and the United States, Canada, and Australia for the transfer and use of passenger name records (PNR) to prevent and combat terrorism and other forms of serious cross-border crime. The Government welcomed the mandates but argued that we should also be collecting data on intra-EU flights. This would give the EU the best chance of avoiding future terrorist incidents.
	The Council agreed the action plan on combating heavy arms trafficking, which recommends an integrated approach to combating arms trafficking and more particularly heavy fire arms, and adopted the conclusions on itinerant gangs which seek to define the problem of itinerant crime groups and agree an administrative approach to tackle the problem, including increased cross-border co-operation. The Council also agreed Council conclusions on preventing and combating identity-related crimes and on identity management with amendments which had been sought by the UK. The conclusions set out instructions for having a robust structure of identity management to combat the threat posed by identity-related crime.
	Commissioner Malmström presented the communication on the EU Internal Security Communication to Council. The communication looks to translate the Council's EU internal security strategy into action points.
	Next the presidency updated the Council on the outcomes of and proposed follow-up to the EU-Russia Permanent Partnership Council (PPC) (freedom, security and justice) (18-19 November), and the Western Balkans ministerial forum (23-24 November). The presidency stated that there was an agreement to work on a stage-by-stage basis, to ensure that all commitments for data protection were met, as well as the fight against drugs, extradition and aid. On the Western Balkans, the presidency felt that there was mixed progress, with some countries doing much better than others; generally the legislation was good, but implementation was taking longer than hoped.
	Under AOB Commissioner Georgieva (Humanitarian Aid) presented the recent Commission communication on civil protection, which was broadly welcomed by member states.
	On the justice day, the presidency informed the Council that agreement on the text of the EU directive on human trafficking had been reached with the European Parliament. Commissioner Malmström welcomed the historic agreement of the first criminal law instrument since Lisbon, although she regretted the failure to extend extra-territorial jurisdiction to habitual residents.
	Next, the Council agreed a general approach on the draft directive on combating sexual exploitation and sexual abuse of children and child pornography. This draft directive aims to update existing EU legislation in the area of combating child sexual exploitation and pornography in line with technological developments. The Government supported the presidency and agreed with the general approach.
	The presidency noted they had made good progress on the draft directive on the European investigation order but that a number of issues still needed to be considered.
	The presidency also sought a general approach on the draft directive on the right to information in criminal proceedings. This is the second measure in the road map to strengthen procedural rights in criminal proceedings. It aims to set common minimum standards and improve the rights of suspects and accused persons by ensuring that they receive information about their rights. The Government maintained their parliamentary scrutiny reservation on this proposal but also welcomed the efforts made by the presidency to find a compromise to the text. The presidency concluded that there was support for a general approach.
	The Council adopted a negotiating mandate authorising the Commission to begin negotiations with the United States on a proposed EU-US agreement on the protection of personal data when transferred for law enforcement purposes. The Government support the proposed agreement in principle, but were unable to vote in favour of the draft negotiating mandate because we consider that the UK rather than the EU should negotiate rules concerning data exchanges between the UK and the US under their bilateral arrangements.
	There was a discussion about the Commission's recently published Communication on "a comprehensive approach on personal data protection in the European Union". The Commission argued that, while the principles of the data protection directive are still valid, a more comprehensive approach to data protection is needed to bring the legislation in line with technological developments. The Commission will be bringing forward new proposals in 2011.
	Next, the presidency obtained agreement among participating member states of the regulation implementing enhanced co-operation in the field of law applicable to divorce-Rome III. The Government are not participating in this measure.
	The presidency provided information about a seminar held on 14 October about resolving international child abduction disputes through mediation.
	The Council then considered a state-of-play report from the presidency about the progress made during its term in the area of e-justice.
	Under AOB, the Commission presented their citizenship report highlighting the importance of citizenship rights and the need to ensure they are better communicated.
	Over lunch, there was a discussion about the forthcoming directive on access to a lawyer in criminal cases. This will be the third measure on the road map to strengthening criminal procedural rights, which is likely to be published in June 2011. The Commission is still in the early stages of drafting the proposal.

WORK AND PENSIONS

Parliamentary Written Question (Correction)

Steve Webb: I regret to inform the House there was an inaccuracy in my answer to parliamentary question 20342 on 1 November 2010, Official Report, column 564W.
	The response indicated that since 2006 credit unions have made over 262,056 loans to financially excluded people, with an additional 43,308 loans made through other community finance organisations. It also indicated that over 275,000 customers who took out a Growth Fund loan also opened a bank or savings account.
	The figure quoted for customers who took out a Growth Fund loan and also opened a bank or savings account is a projection to the end of March 2011, but the response makes it appear that this is the figure to date. It is in fact estimated that the number of people who will have opened a bank or savings account to September 2010 is 216,000.

Skills Conditionality: Public Consultation

Chris Grayling: Today my hon. Friend the Minister for Further Education, Skills and Lifelong Learning and I have published a joint document setting out how we intend to implement skills conditionality when certain benefit claimants are referred to training as part of their journey back to work.
	The Government believe that individuals who are able to look for or prepare for work should be required to do so as a condition of receiving benefit, and those who fail to meet their responsibilities should face a financial sanction. Improving someone's skills is one of the key ways to help individuals prepare for and gain work.
	This consultation proposes that claimants required to either actively seek, or prepare for, work could be mandated to undertake activity to address an identified skills need which will aid their movement into work. This puts activity to address a skills need on to the same basis as other conditionality requirements.
	The proposed policy will require legislative changes. The purpose of this consultation is to seek views on the implementation of skills conditionality that will make it fair, consistent and as administratively straightforward as possible. The consultation will run until 3 February.
	Copies of the consultation document are available on the Department's website at: http://dwp.gov.uk/consultations/.

Benefits Uprating

Steve Webb: I am pleased to announce the proposed rates of benefit for 2011, which are set out in the table below. The annual uprating of benefits will take place for state pensions and most other benefits in the first full week of the tax year. In 2011, this will be the week beginning 11 April. A corresponding provision will be made in Northern Ireland.
	
		
			 Weekly rates unless otherwise shown 
			  2010 2011 
			 Attendance Allowance   
			 Higher rate 71.40 73.60 
			 Lower rate 47.80 49.30 
			
			
			 Bereavement Benefit   
			 Bereavement payment (lump sum) 2,000.00 2,000.00 
			
			 Widowed parent's allowance 97.65 100.70 
			
			 Bereavement Allowance   
			 Standard rate 97.65 100.70 
			
			 Age-related   
			 age 54 90.81 93.65 
			 53 83.98 86.60 
			 52 77.14 79.55 
			 51 70.31 72.50 
			 50 63.47 65.46 
			 49 56.64 58.41 
			 48 49.80 51.36 
			 47 42.97 44.31 
			 46 36.13 37.26 
			 45 29.30 30.21 
			
			 Capital Limits - rules common to income support, income based jobseeker's allowance, income-related employment and support allowance, pension credit, housing benefit and council tax benefit unless stated otherwise   
			 Upper limit 16,000.00 16,000.00 
			 Upper limit-pension credit guarantee credit and those getting hb/ctb and pension credit guarantee credit No limit No limit 
			 Amount disregarded-all benefits except pension credit and housing benefit and council tax benefit for those above the qualifying age for guarantee credit 6,000.00 6,000.00 
			 Amount disregarded-pension credit and housing benefit and council tax benefit for those above the qualifying age for pension credit 10,000.00 10,000.00 
			 child disregard (not pension credit) 3,000.00 3,000.00 
			 amt disregarded (living in RC/NH) 10,000.00 10,000.00 
			
			 Tariff income   
			 £1 for every £250, or part thereof, between the amount of capital disregarded and the capital upper limit   
			
			 Tariff income-pension credit and hb/ctb where claimant/partner is over guarantee credit qualifying age   
			 £1 for every £500, or part thereof, between the amount of capital disregarded and capital upper limit   
			
			 Carer's Allowance 53.90 55.55 
			
			 Council Tax Benefit   
			 Personal allowances   
			 Single   
			 18 to 24 51.85 53.45 
			 25 or over 65.45 67.50 
			 entitled to main phase ESA 65.45 67.50 
			
			 lone parent 65.45 67.50 
			
			 couple 102.75 105.95 
			
			 dependent children 57.57 62.33 
			
			 pensioner   
			 single/lone parent has attained the qualifying age for Pension Credit but under 65 132.60 137.35 
			 couple-one or both has attained the qualifying age for Pension Credit but both under 65 202.40 209.70 
			 single/lone parent-65 and over 153.15 157.90 
			 couple-one or both 65 and over 229.50 236.80 
			
			 Premiums   
			 Family 17.40 17.40 
			 family (lone parent rate) 22.20 22.20 
			 child under 1 10.50 10.50 
			
			 Disability   
			 Single 28.00 28.85 
			 Couple 39.85 41.10 
			
			 enhanced disability   
			 single 13.65 14.05 
			 disabled child 21.00 21.63 
			 couple 19.65 20.25 
			
			 severe disability   
			 Single 53.65 55.30 
			 couple (lower rate) 53.65 55.30 
			 couple (higher rate) 107.30 110.60 
			
			 disabled child 52.08 53.62 
			
			 Carer 30.05 31.00 
			
			 ESA components   
			 work-related activity 25.95 26.75 
			 Support 31.40 32.35 
			
			 Alternative maximum Council Tax Benefit   
			 second adult on IS, JSA(IB), ESA(IR) or Pension Credit 25% of council tax 25% of council tax 
			 first adult(s) student(s) 100% of council tax 100% of council tax 
			
			 second adult's gross income:   
			 under £177.00 15% of council tax 15% of council tax 
			 £177.00 to £230.99 7.5% of council tax 7.5% of council tax 
			
			 Deductions-rules common to income support, jobseeker's allowance, employment and support allowance, pension credit, housing benefit and council tax benefit unless stated otherwise   
			
			 Non-dependant deductions from housing benefit and from IS, JSA(IB), ESA(IR) and Pension Credit aged 25 and over in receipt of IS and JSA(IB), in receipt of main phase ESA(IR),   
			 aged 18 or over, not in remunerative work 7.40 9.40 
			 aged 18 or over and in remunerative work   
			 - gross income: less than £122.00 7.40 9.40 
			 - gross income: £122 to £179.99 17.00 21.55 
			 - gross income: £180 to £233.99 23.35 29.60 
			 - gross income: £234 to £309.99 38.20 48.45 
			 - gross income: £310 to £386.99 43.50 55.20 
			 - gross income: £387 and above 47.75 60.60 
			
			 Non-dependant deductions from council tax benefit   
			 aged 18 or over and in remunerative work   
			 - gross income: £387 or more 6.95 8.60 
			 - gross income: £310 - £386.99 5.80 7.20 
			 - gross income: £180 - £309.99 4.60 5.70 
			 - gross income less than £180 2.30 2.85 
			 others, aged 18 or over 2.30 2.85 
			
			 Deductions from housing benefit   
			 Service charges for fuel   
			 Heating 21.55 21.55 
			 hot water 2.50 2.50 
			 Lighting 1.75 1.75 
			 Cooking 2.50 2.50 
			
			 Amount ineligible for meals   
			 three or more meals a day   
			 single claimant 23.35 24.05 
			 each person in family aged 16 or over 23.35 24.05 
			 each child under 16 11.80 12.15 
			 less than three meals a day   
			 single claimant 15.50 16.00 
			 each person in family aged 16 or over 15.50 16.00 
			 each child under 16 7.80 8.05 
			 breakfast only-claimant and each member of the family 2.85 2.95 
			
			 Amount for personal expenses (not HB/CTB) 22.30 22.60 
			
			 Third party deductions from IS, JSA(IB), ESA(IR) and Pension Credit for;   
			
			 arrears of housing, fuel and water costs council tax etc. and deductions for ELDS and ILS. 3.30 3.40 
			
			
			 child support, contribution towards maintenance (CTM)   
			 standard deduction 6.60 6.80 
			 lower deduction 3.30 3.40 
			
			 arrears of Community Charge   
			 court order against claimant 3.30 3.40 
			 court order against couple 5.15 5.30 
			 fine or compensation order   
			 standard rate 5.00 5.00 
			 lower rate 3.30 3.40 
			
			 Maximum deduction rates for recovery of overpayments (not CTB/JSA(C)/ESA(C))   
			 ordinary overpayments 9.90 10.20 
			
			 where claimant convicted of fraud 13.20 13.60 
			
			 Deductions from JSA(C) and ESA (C)   
			 Arrears of comm. charge, council tax, fines & overpayment recovery   
			 Age 16 - 24 17.28 17.81 
			 Age 25 + 21.81 22.50 
			 Max. deductions for arrears of child maintenance (CTM)   
			 Age 16 - 24 17.28 17.81 
			 Age 25 + 21.81 22.50 
			
			
			 Dependency Increases   
			 Adult dependency increases for spouse or person looking after children-payable with;   
			 State pension on own insurance (Cat A or B) 57.05 58.80 
			 Long-term incapacity benefit 53.10 54.75 
			
			 Severe disablement allowance 31.90 32.90 
			
			 Carers allowance 31.70 32.70 
			
			 short-term incapacity benefit (over state pension age) 51.10 52.70 
			
			 short-term incapacity benefit (under state pension age) 41.35 42.65 
			
			 Child Dependency Increases-payable with;   
			 State pension; widowed mothers/parents allowance; short-term incapacity benefit-higher rate or over state pension age; long-term incapacity benefit; carer's allowance; severe disablement allowance; industrial death benefit (higher rate); 11.35 11.35 
			 Note:   
			 The rate of child dependency increase is adjusted where it is payable for the eldest child for whom child benefit is also paid. The weekly rate in such cases is reduced by the difference (less £3.65) between the ChB rates for the eldest and subsequent children. 8.10 8.10 
			
			 Disability Living Allowance   
			 Care Component   
			 Highest 71.40 73.60 
			 Middle 47.80 49.30 
			 Lowest 18.95 19.55 
			 Mobility Component   
			 Higher 49.85 51.40 
			 Lower 18.95 19.55 
			
			 Disregards   
			 Housing benefit and council tax benefit   
			 Earnings disregards   
			 standard (single claimant) 5.00 5.00 
			 Couple 10.00 10.00 
			 higher (special occupations/circumstances) 20.00 20.00 
			 lone parent 25.00 25.00 
			 childcare charges 175.00 175.00 
			 childcare charges (2 or more children) 300.00 300.00 
			 permitted work higher 93.00 95.00 
			 permitted work lower 20.00 20.00 
			 Other Income disregards   
			 adult maintenance disregard 15.00 15.00 
			 war disablement pension and war widows pension 10.00 10.00 
			 widowed mothers/parents allowance 15.00 15.00 
			 Armed Forces Compensation Scheme 10.00 10.00 
			 student loan 10.00 10.00 
			 student's covenanted income 5.00 5.00 
			 income from boarders (plus 50% of the balance) 20.00 20.00 
			 additional earnings disregard 17.10 17.10 
			 income from subtenants (£20 fixed from April 08) 20.00 20.00 
			
			 Income support, income-based jobseeker's allowance, income-related employment and support allowance and pension credit   
			 Earnings disregards   
			 standard (single claimant) 5.00 5.00 
			 Couple 10.00 10.00 
			 higher (special occupations/circumstances) 20.00 20.00 
			 Other Income disregards   
			 war disablement pension and war widows pension 10.00 10.00 
			 widowed mothers/parents allowance 10.00 10.00 
			 Armed Forces Compensation Scheme 10.00 10.00 
			 student loan (not pension credit) 10.00 10.00 
			 student's covenanted income (not pension credit) 5.00 5.00 
			 income from boarders (plus 50% of the balance) 20.00 20.00 
			 income from subtenants (£20 fixed from April 08) 20.00 20.00 
			
			 Earnings Rules   
			 Carers allowance 100.00 100.00 
			
			 Limit of earnings from councillor's allowance 93.00 95.00 
			
			 Permitted work earnings limit   
			 Higher 93.00 95.00 
			 Lower 20.00 20.00 
			 Industrial injuries unemployability supplement permitted earnings level (annual amount) 4,836.00 4,940.00 
			
			 Earnings level at which adult dependency (ADI) increases are affected with:   
			 short-term incapacity benefit where claimant is   
			 (a) under state pension age 41.35 42.65 
			 (b) over state pension age 51.10 52.70 
			
			 state pension, long term incapacity benefit, severe disablement allowance, unemployability supplement-payable when dependant   
			 (a) is living with claimant 65.45 67.50 
			 (b) still qualifies for the tapered earnings rule 45.09 45.09 
			
			 Earnings level at which ADI is affected when dependent is not living with claimant;   
			 state pension, 57.05 58.80 
			 long-term incapacity benefit, 53.10 54.75 
			 unemployability supplement, 53.90 55.55 
			 severe disablement allowance 31.90 32.90 
			
			 Carers allowance 31.70 32.70 
			
			 Earnings level at which child dependency increases are affected   
			 for first child 200.00 205.00 
			 additional amount for each subsequent child 26.00 27.00 
			
			 Pension income threshold for incapacity benefit 85.00 85.00 
			 Pension income threshold for contributory employment support allowance 85.00 85.00 
			
			
			 Employment and Support Allowance   
			 Personal allowances   
			 Single   
			 under 25 51.85 53.45 
			 25 or over 65.45 67.50 
			
			 lone parent   
			 under 18 51.85 53.45 
			 18 or over 65.45 67.50 
			
			 Couple   
			 both under 18 51.85 53.45 
			 both under 18 with child 78.30 80.75 
			 both under 18 (main phase) 65.45 67.50 
			 both under 18 with child (main phase) 102.75 105.95 
			 one 18 or over, one under 18 102.75 105.95 
			 both over 18 102.75 105.95 
			 claimant under 25, partner under 18 51.85 53.45 
			 claimant 25 or over, partner under 18 65.45 67.50 
			 claimant (main phase), partner under 18 65.45 67.50 
			
			 Premiums   
			 enhanced disability   
			 Single 13.65 14.05 
			 Couple 19.65 20.25 
			
			 severe disability   
			 Single 53.65 55.30 
			 couple (lower rate) 53.65 55.30 
			 couple (higher rate) 107.30 110.60 
			
			 Carer 30.05 31.00 
			
			 pensioner   
			 single with WRAC 41.20 43.10 
			 single with support component 35.75 37.50 
			 single with no component 67.15 69.85 
			 couple with WRAC 73.70 77.00 
			 couple with support component 68.25 71.40 
			 couple with no component 99.65 103.75 
			
			 Components   
			 Work-related activity 25.95 26.75 
			 Support 31.40 32.35 
			
			 Housing Benefit   
			 Personal allowances   
			 Single   
			 under 25 51.85 53.45 
			 25 or over 65.45 67.50 
			 entitled to main phase ESA 65.45 67.50 
			
			 lone parent   
			 under 18 51.85 53.45 
			 18 or over 65.45 67.50 
			 entitled to main phase ESA 65.45 67.50 
			
			 Couple   
			 both under 18 78.30 80.75 
			 one or both 18 or over 102.75 105.95 
			 claimant entitled to main phase ESA 102.75 105.95 
			
			 dependent children 57.57 62.33 
			
			 pensioner   
			 single/lone parent has attained the qualifying age for pension credit but under 65 132.60 137.35 
			 couple-one or both has attained the qualifying age for pension credit but both under 65 202.40 209.70 
			 single/lone parent-65 and over 153.15 157.90 
			 couple-one or both 65 and over 229.50 236.80 
			
			 Premiums   
			 family 17.40 17.40 
			 family (lone parent rate) 22.20 22.20 
			 child under 1 10.50 10.50 
			
			 disability   
			 single 28.00 28.85 
			 couple 39.85 41.10 
			
			 enhanced disability   
			 single 13.65 14.05 
			 disabled child 21.00 21.63 
			 couple 19.65 20.25 
			
			 severe disability   
			 single 53.65 55.30 
			 couple (lower rate) 53.65 55.30 
			 couple (higher rate) 107.30 110.60 
			
			 disabled child 52.08 53.62 
			
			 carer 30.05 31.00 
			
			 ESA components   
			 work-related activity 25.95 26.75 
			 support 31.40 32.35 
			
			
			 Incapacity Benefit   
			 Long-term incapacity benefit 91.40 94.25 
			
			 Short-term Incapacity Benefit (under state pension age)   
			 lower rate 68.95 71.10 
			 higher rate 81.60 84.15 
			
			 Short-term incapacity benefit (over state pension age)   
			 lower rate 87.75 90.45 
			 higher rate 91.40 94.25 
			
			 Increase of long-term incapacity benefit for age   
			 higher rate 15.00 13.80 
			 lower rate 5.80 5.60 
			
			 Invalidity allowance (Transitional)   
			 higher rate 15.00 13.80 
			 middle rate 8.40 7.10 
			 lower rate 5.45 5.60 
			
			 Income Support   
			 Personal allowances   
			 single   
			 under 25 51.85 53.45 
			 25 or over 65.45 67.50 
			
			 lone parent   
			 under 18 51.85 53.45 
			 18 or over 65.45 67.50 
			
			 couple   
			 both under 18 51.85 53.45 
			 both under 18-higher rate 78.30 80.75 
			 one under 18, one under 25 51.85 53.45 
			 one under 18, one 25 and over 65.45 67.50 
			 both 18 or over 102.75 105.95 
			
			 dependent children 57.57 62.33 
			
			 Premiums   
			 family/lone parent 17.40 17.40 
			
			 pensioner (applies to couples only) 99.65 103.75 
			
			 disability   
			 single 28.00 28.85 
			 couple 39.85 41.10 
			
			 enhanced disability   
			 single 13.65 14.05 
			 disabled child 21.00 21.63 
			 couple 19.65 20.25 
			
			 severe disability   
			 single 53.65 55.30 
			 couple (lower rate) 53.65 55.30 
			 couple (higher rate) 107.30 110.60 
			
			 disabled child 52.08 53.62 
			
			 carer 30.05 31.00 
			
			 Relevant sum for strikers 35.00 36.00 
			
			
			 Industrial Death Benefit   
			 Widow's pension   
			 higher rate 97.65 102.15 
			 lower rate 29.30 30.65 
			 Widower's pension 97.65 102.15 
			
			 Industrial Injuries Disablement Benefit   
			 18 and over, or under 18 with dependants   
			 100% 145.80 150.30 
			 90% 131.22 135.27 
			 80% 116.64 120.24 
			 70% 102.06 105.21 
			 60% 87.48 90.18 
			 50% 72.90 75.15 
			 40% 58.32 60.12 
			 30% 43.74 45.09 
			 20% 29.16 30.06 
			
			 Under 18   
			 100% 89.35 92.10 
			 90% 80.42 82.89 
			 80% 71.48 73.68 
			 70% 62.55 64.47 
			 60% 53.61 55.26 
			 50% 44.68 46.05 
			 40% 35.74 36.84 
			 30% 26.81 27.63 
			 20% 17.87 18.42 
			
			 Maximum life gratuity (lump sum) 9,680.00 9,980.00 
			
			 Unemployability Supplement 90.10 92.90 
			 increase for early incapacity   
			 higher rate 18.65 19.25 
			 middle rate 12.00 12.40 
			 lower rate 6.00 6.20 
			
			 Maximum reduced earnings allowance 58.32 60.12 
			
			
			 Maximum retirement allowance 14.58 15.03 
			
			 Constant attendance allowance   
			 exceptional rate 116.80 120.40 
			 intermediate rate 87.60 90.30 
			 normal maximum rate 58.40 60.20 
			 part-time rate 29.20 30.10 
			
			 Exceptionally severe disablement allowance 58.40 60.20 
			
			
			 Jobseeker's Allowance   
			 Contribution based JSA-Personal rates   
			 under 25 51.85 53.45 
			 25 or over 65.45 67.50 
			
			 Income-based JSA - personal allowances   
			 under 25 51.85 53.45 
			 25 or over 65.45 67.50 
			
			 lone parent   
			 under 18 51.85 53.45 
			 18 or over 65.45 67.50 
			
			 couple   
			 both under 18 51.85 53.45 
			 both under 18-higher rate 78.30 80.75 
			 one under 18, one under 25 51.85 53.45 
			 one under 18, one 25 and over 65.45 67.50 
			 both 18 or over 102.75 105.95 
			
			 dependent children 57.57 62.33 
			
			 Premiums   
			 family/lone parent 17.40 17.40 
			
			 pensioner   
			 single 67.15 69.85 
			 couple 99.65 103.75 
			 disability   
			 single 28.00 28.85 
			 couple 39.85 41.10 
			
			 enhanced disability   
			 single 13.65 14.05 
			 disabled child 21.00 21.63 
			 couple 19.65 20.25 
			
			 severe disability   
			 single 53.65 55.30 
			 couple (lower rate) 53.65 55.30 
			 couple (higher rate) 107.30 110.60 
			
			 disabled child 52.08 53.62 
			
			 carer 30.05 31.00 
			
			 Prescribed sum for strikers 35.00 36.00 
			
			 Maternity Allowance   
			 Standard rate 124.88 128.73 
			 MA threshold 30.00 30.00 
			
			 Pension Credit   
			 Standard minimum guarantee   
			 single 132.60 137.35 
			 couple 202.40 209.70 
			
			 Additional amount for severe disability   
			 single 53.65 55.30 
			 couple (one qualifies) 53.65 55.30 
			 couple (both qualify) 107.30 110.60 
			
			 Additional amount for carers 30.05 31.00 
			
			 Savings credit   
			 threshold-single 98.40 103.15 
			 threshold-couple 157.25 164.55 
			 maximum-single 20.52 20.52 
			 maximum-couple 27.09 27.09 
			
			 Amount for claimant and first spouse in polygamous marriage 202.40 209.70 
			 Additional amount for additional spouse 69.80 72.35 
			
			
			 Pneumoconiosis, Byssinosis, and Miscellaneous Diseases Scheme and the Workmen's Compensation (Supplementation)   
			 Total disablement allowance and major incapacity allowance (maximum) 145.80 150.30 
			
			 Partial disablement allowance 53.90 55.55 
			
			 Unemployability supplement 90.10 92.90 
			 increases for early incapacity -   
			 higher rate 18.65 19.25 
			 middle rate 12.00 12.40 
			 lower rate 6.00 6.20 
			
			 Constant attendance allowance   
			 exceptional rate 116.80 120.40 
			 intermediate rate 87.60 90.30 
			 normal maximum rate 58.40 60.20 
			 part-time rate 29.20 30.10 
			
			 Exceptionally severe disablement allowance 58.40 60.20 
			
			 Lesser incapacity allowance   
			 maximum rate of allowance 53.90 55.55 
			 based on loss of earnings over 71.40 73.60 
			
			
			 Severe Disablement Allowance   
			 Basic rate 59.45 62.95 
			 Age-related addition (from Dec 90)   
			 Higher rate 15.00 13.80 
			 Middle rate 8.40 7.10 
			 Lower rate 5.45 5.60 
			
			
			 State Pension   
			 Category A or B 97.65 102.15 
			 Category B(lower)-spouse or civil partner's insurance 58.50 61.20 
			 Category C or D-non-contributory 58.50 61.20 
			
			 Additional pension Increase by: 3.10% 
			
			 Increments to:-   
			 Basic pension Increase by: 3.10% 
			 Additional pension Increase by: 3.10% 
			 Graduated Retirement Benefit (GRB) Increase by: 3.10% 
			 Inheritable lump sum Increase by: 3.10% 
			
			 Contracted-out Deduction from AP in respect of pre-April 1988 contracted-out earnings Nil Nil 
			
			
			 Contracted-out Deduction from AP in respect of contracted-out earnings from April 1988 to 1997 Increase by: 3.00% 
			
			 Graduated Retirement Benefit (unit) 0.1153 0.1189 
			 Increase of long-term incapacity for age Increase by: 3.10% 
			
			 Addition at age 80 0.25 0.25 
			
			 Increase of long-term incapacity for age   
			 higher rate 18.65 19.25 
			 lower rate 9.35 9.65 
			
			 Invalidity Allowance (Transitional) for State Pension recipients   
			 higher rate 18.65 19.25 
			 middle rate 12.00 12.40 
			 lower rate 6.00 6.20 
			
			 Statutory Adoption Pay   
			 Earnings threshold 97.00 102.00 
			 Standard Rate 124.88 128.73 
			
			 Statutory Maternity Pay   
			 Earnings threshold 97.00 102.00 
			 Standard rate 124.88 128.73 
			
			 Statutory Paternity Pay   
			 Earnings threshold 97.00 102.00 
			 Standard Rate 124.88 128.73 
			
			 Statutory Sick Pay   
			 Earnings threshold 97.00 102.00 
			 Standard rate 79.15 81.60 
			
			 Widow's Benefit   
			
			 Widowed mother's allowance 97.65 100.70 
			
			 Widow's pension   
			 standard rate 97.65 100.70 
			
			 age-related(1)   
			 age 54 (49) 90.81 93.65 
			 53 (48) 83.98 86.60 
			 52 (47) 77.14 79.55 
			 51 (46) 70.31 72.50 
			 50 (45) 63.47 65.46 
			 49 (44) 56.64 58.41 
			 48 (43) 49.80 51.36 
			 47 (42) 42.97 44.31 
			 46 (41) 36.13 37.26 
			 45 (40) 29.30 30.21 
			 (1) For deaths occurring before 11 April 1988 refer to age-points shown in brackets.